CESC approves with RPG Retail merger

New Delhi, Apr 17 (UNI) The board of private-sector power utility CESC Ltd, part of the family-controlled RPG group, today approved the merger scheme with RPG Retail Ltd, which owns the Spencer's department store, music stores and hypermarkets.

As per the scheme, one fully paid-up equity share of the company will be issued for every 1.98 fully paid-up equity shares of the merging company. The proposed merger will involvew issue of around 31 million fully paid-up equity shares of Rs 10 each of the company, a statement said.

The scheme will come into effect from April 1, 2007, In March, RPG Group said it planned a share sale to help raise 225 million dollar to expand RPG Retail, growing the number of Spencer's stores to 1,000 by the end of 2009 from around 400 stores now.

It also said then that it would float an initial public offering to fund the expansion.

UNI